Indian equities drop for fourth day as oil surges; analysts eye select breakouts
India's Nifty dropped below 22,900 for a fourth session as surging crude prices and West Asian tensions triggered broad selling, highlighting a shift toward stock-specific trading strategies.
Indian equities extended losses on July 23, with the Nifty slipping below the 22,900 mark amid broad-based selling. The downturn was driven by surging crude oil prices linked to escalating tensions in West Asia. Declines were widespread, with midcap and smallcap indices each falling 1%, while major losers included Adani Enterprises, Shriram Finance, and Nestle India.
Only the auto and media sectors bucked the trend. Nifty Auto rose 0.66%, supported by gains in Bajaj Auto, Mahindra & Mahindra, and Eicher Motors, while Nifty Media added 0.26%. The rest of the market was firmly in the red, highlighting a defensive rotation among institutional and retail participants.
The selling pressure reflects growing investor anxiety over macroeconomic headwinds following a status-quo interest rate decision by the Reserve Bank of India. Weakness was concentrated in real estate, down nearly 2%, alongside oil and gas, infrastructure, and public sector banks. The Bank Nifty has particularly disappointed, with sell-offs at higher levels offsetting decent earnings and dragging down broader index recovery efforts.
Options buildup indicates sentiment has shifted back to bearish, with key support levels now under threat. A doji pattern formed earlier in the week signaled deep uncertainty, capping recovery attempts that have stalled over the past three months. Traders are increasingly avoiding broad index exposure, opting instead for stock-specific setups insulated from the broader macro and geopolitical noise.
Within this selective environment, Raja Venkatraman of NeoTrader has identified Bajaj Holdings & Investment as a technical breakout candidate. Trading at ₹10,540 with a price-to-earnings ratio of 25.16, the Bajaj Group's primary investment vehicle is showing upward momentum following strong first-quarter results and a revival in the FMCG sector. Venkatraman recommends buying above ₹10,540 for a two-month target of ₹11,425, with a stop loss at ₹10,100, citing technical support at ₹9,900 and resistance at ₹12,000.
In the healthcare space, Medanta (Global Health Limited) is drawing attention after breaking out of a three-month consolidation range. The hospital network, founded by cardiac surgeon Dr. Naresh Trehan, recovered sharply from April lows around ₹960 to approach its 52-week high of ₹1,455.85. With the pharma sector holding firm, Venkatraman advises buying above ₹1,380 for a two-month target of ₹1,725. However, the stock's elevated P/E ratio of 74.45 and risks from regulatory price caps and medical staff attrition warrant caution.
